Zomato to Replace JSW Steel in BSE Sensex as Part of December Rejig

Food delivery giant Zomato will replace JSW Steel in the BSE Sensex from December 23, 2024, as part of a periodic reshuffle of the index’s constituents. This move marks Zomato as the first new-age tech company to enter the prestigious 30-share index. JSW Steel will exit to make space for Zomato in the index.

Zomato’s Impressive Stock Performance

As of 10:10 AM, November 25, 2024, Zomato has shown impressive stock performance in 2024, delivering over 147% return over the last 12 months. Zomato share price has surged over 125% year-to-date (YTD) and 53% in the last 6 months, significantly outperforming the BSE Sensex, which gained 20% during the same period. As of November 22, Zomato’s market capitalisation stood at ₹2.33 lakh crore.

In its July-September 2024 quarter, Zomato reported a 69% growth in consolidated revenue, reaching ₹4,799 crore. Net profit also jumped five-fold to ₹176 crore compared to last year’s period.

JSW Steel’s Performance

As of 10:10 AM, November 25, 2024, JSW Steel, which will exit the Sensex, has given 22% returns in the last 12 months, a solid performance but not as strong as Zomato’s growth. JSW Steel share price is currently trading at ₹956.60, down by ₹20.75 or 2.12%. 

Changes in Other BSE Indices

In addition to the Sensex, the BSE has announced several updates to its indices based on the average 6-month float-adjusted market capitalisation of companies.

Changes in the BSE 100 Index

The BSE 100 index will see the addition of 6 new stocks, including Jio Financial Services, Suzlon Energy, Adani Green Energy, Adani Power, Samvardhana Motherson International, and PB Fintech. These companies will replace Ashok Leyland, PI Industries, IDFC First Bank, IRCTC, UPL, and APL Apollo Tubes.

BSE Sensex 50 Index Rejig

The BSE Sensex 50 will also undergo changes, with Zomato, Jio Financial Services, and Hindustan Aeronautics Ltd (HAL) joining the index. Exiting the index will be HDFC Life Insurance, Bharat Petroleum Corporation Ltd (BPCL), and LTI Mindtree.

BSE Sensex Next 50 Changes

In the BSE Sensex Next 50, the index will see new additions like Adani Green Energy, HDFC Life Insurance, BPCL, LTI Mindtree, Samvardhana Motherson International, PB Fintech, Suzlon Energy, and Adani Power. Companies leaving this index include Zomato, HAL, Ashok Leyland, PI Industries, IDFC First Bank, IRCTC, UPL, and APL Apollo Tubes.

Futures and Options Segment Update

Starting December 13, 2024, futures and options (F&O) contracts will be introduced for 43 stocks. Some of the new stocks entering the F&O segment include Adani Energy Solutions, Adani Green Energy, Adani Total Gas, One 97 Communications (Paytm), Yes Bank, Avenue Supermarts (DMart), Life Insurance Corporation of India (LIC), Zomato, and Jio Financial Services.

These changes reflect the ongoing efforts of BSE to align its indices with market dynamics, offering investors enhanced opportunities for diversification and exposure.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.